Oil prices rose in early trade Thursday as dwindling U.S. crude inventories signal a tighter supply, and hopes grow that the Federal Reserve will cut interest rates by the end of the year.
Brent oil futures for July were up 23 cents at $83.81 a barrel by 0033 GMT. U.S. West Texas Intermediate crude for June was up 29 cents at $79.28 a barrel.
Crude inventories fell last week by 1.4 million barrels to 459.5 million barrels, according to the Energy Information Administration, more than analysts expected in a Reuters poll that predicted a decline of 1.1 million barrels due to increased refinery activity.
Rising gasoline inventories, which unexpectedly rose by more than 900,000 barrels during the week to 228 million barrels, according to the EIA, kept prices from rising.
Rising expectations that the U.S. central bank will cut interest rates by the end of the year, after weaker-than-expected U.S. jobs data, also boosted oil prices. Lower interest rates may increase crude oil spending.
Hopes for a ceasefire in the Middle East, with the United States saying earlier this week that negotiations on a ceasefire in Gaza should help bridge the gaps between Israel and Hamas, prevented oil prices from rising. (Reporting by Laila Kearney in New York; Editing by Stephen Coates)
